Nestle holding talks with Yorkshire’s R&R Ice Cream to form joint venture

Yorkshire’s R&R Ice Cream and Nestle are on the verge of joining forces, in a deal worth £2.2bn, with an aim of dominating the global ice-cream market.

The transaction, which would see Nestlé’s international ice cream operations combine with R&R, is expected to be a 50/50 joint venture.

Based in Leeming Bar, North Yorkshire, R&R is one of Europe’s largest ice cream manufacturer and was acquired by French private equity group PAI Partners in 2013 for approximately €850m.

R&R’s ice cream brands include Cadbury Flake Cones, Rowntree’s Fruit Pastille lollies, Kelly’s Cornish ice cream and Oreo ice cream.

The Swiss food giant Nestle, which makes Kit Kat chocolate bars, Nespresso coffee and Purina pet food, is aiming to establish its ice cream businesses in Europe, Egypt, the Philippines, Brazil and Argentina into the deal with all of R&R’s.

However, the joint venture will not include Nestle’s manufacturers in the US, which produce the Dreyer’s and Edy’s ice cream brands.

Paul Bulcke, Nestlé’s chief executive, said: “We have a longstanding relationship with R&R. Combining the capabilities of our two companies in this way would offer an exciting opportunity for future growth in a dynamic category.”

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